Home loan foreclosure prevention plans from Bank of America have been mostly offered through home loan modifications from the federal Making Home Affordable Program, but there are homeowners who are still unaware that extension plans exist which could offer them alternatives assistance programs which can lower their mortgage payments. Obviously, with predictions that foreclosures will increase in 2010, there is concern on the part of some homeowners that foreclosure prevention efforts beyond traditional modifications may be needed, but there are options in this area for homeowners who are facing home loan difficulty.
While many homeowners with Bank of America may be aware that there are in-house home loan modification assistance plans, there may be the need for more homeowners to be made aware of extension plans from the Making Home Affordable Program that offer similar foreclosure prevention benefits to homeowners in particular cases. According to reports, proprietary home loan modification assistance has been made available to a greater number of homeowners over the recent months than federal modification assistance, which has led many to believe that these in-house modification plans may be more of an option in 2011 if federal modifications continue to slow.
Yet, Bank of America homeowners who may be struggling with particular difficulties, like unemployment, do have extension plans which may help them avoid foreclosure through plans like the Unemployment Program. Homeowners who qualify for the Home Affordable Unemployment Program may even receive a mortgage payment reduction, which is similar to assistance offered through home loan modifications, or they may be offered forbearance on their home loan payments for a set period of time.
Obviously, there are also issues like underwater mortgages and second liens which homeowners need addressed, but extension programs available from servicers like Bank of America, within HAMP, can address these issues as well. Yet, homeowners in need of assistance that goes beyond traditional modifications may also still benefit from home loan refinancing, but again this is only helpful to those who are in a good financial position and can afford closing costs that come with refinancing with either their primary servicer or another financial institution.
While homeowners are still being made aware of these alternative assistance plans to help lower mortgage payments, advisers have often told homeowners to either seek assistance early by contacting their servicer or an approved housing counselor so that they have a better opportunity to find the foreclosure prevention aid that may be beneficial for their situation. There is no guarantee when it comes to foreclosure prevention programs, but homeowners who begin to seek out an assistance program with their servicer early or consult assistance from a reparable housing counselor may have a better opportunity at finding foreclosure prevention assistance.